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Suppose the Economy Is in Long-Run Equilibrium and There Is

Question 252

Multiple Choice

Suppose the economy is in long-run equilibrium and there is an increase in investment.As a result,real GDP will ________ in the short run,and ________ in the long run.


A) increase; increase further
B) increase; decrease to its initial value
C) decrease; decrease further
D) decrease; increase to its initial level

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